Child Tax Credit Income Limits
Contents
| Filing Status | Maximum Income to Qualify for Full Credit | Income at which Credit Phases Out |
|---|---|---|
| Married Filing Jointly | $150,000 | $400,000 |
| Head of Household | $112,500 | $200,000 |
| Single or Qualifying Widow(er) | $75,000 | $200,000 |
The changes to the child tax credit, which you’ll file a federal income tax return for 2024, boosted the amount of the credit and adjusted the income thresholds.
In a way, the previous income limits apply, but some taxpayers aren’t going to see much of a difference with the adjustments. In other words, the child tax credit remains the same for some. This article will detail everything you need to know about the updated child tax credit income limits.
Increased child tax credit
The child tax credit has been increased from $2,000 to $3,000 or $3,6000, depending on the age of the qualifying child. For children under 6, the CTC is $3,600 with $300 optional monthly advanced payments. Taxpayers with qualifying children/dependent between the ages of 6 and 18 get $3,000. That said, the age requirements also changed from 17 to 18.
New income thresholds
The Internal Revenue Service adjusted the income thresholds in a way that if your MAGI is above the below amounts, you won’t get an increased child tax credit.
Single filers: $0 – $75,000
Married filing jointly: $150,000
Head of household: $112,500
If your modified adjusted gross income is over the mentioned limits, the credit will start to phase out. However, there is a secondary income limit that applies as well.
Second income limits
Single and head of household: $200,000
Married filing jointly: $400,000
The way that the second phase out works is that if your modified adjusted gross income is over $75,000 as a single filer but under $200,000, you still get the full $2,000 – probably a little over it since it’s less. You can think of these income thresholds as if there were two separate tax credits.
When MAGI exceeds $200,000 or $400,000, the credit will get smaller depending on your filing status. For every $1,000 above the income threshold that applies to you, the credit will be reduced by $50 until you’re no longer qualified for the child tax credit.
Calculating MAGI
One of the Internal Revenue Service’s ways to figure out a taxpayer’s income is the modified adjusted gross income. It’s basically your AGI but modified, hence the name. It’s calculated easily, and you can learn more about how to calculate MAGI here.
Conclusion
Although the new income limits are lower, you still won’t miss out on the child tax credit. Most taxpayers are still eligible for the $2,000 child tax credit as if nothing was changed. The credit begins to really dry up above MAGI above $200,000.
